Negative working capital means the respective opposite. Nevertheless, with the requirement that sufficient liquidity is available. Days of Inventory Outstanding (DIO) – DIO shows how quickly inventory is sold.Selling stock faster has a positive impact on working capital as it means that cash is not tied up in unsold … Also known as days sales of inventory, it is an important performance indicator in inventory and working capital … Industry Performance Eight out of 18 sectors have improved working capital … affecting DIO and the working capital impact that is expected. To better explain inventory to working capital, it is an important indicator of a company’s operation efficiency. Working Capital may be defined by efficiency of a company and their shortterm financial health. Hierbei wird durch die Optimierung der sogenannten Financial Supply Chain, also der finanziellen Ströme eines Unternehmens, eine Reduzierung des Working Capital … A positive working capital means that a company is theoretically able to pay the shortterm liabilities. ganzheitlicher Ansatz zur Verbesserung der Liquidität und Rentabilität eines Unternehmens eingesetzt werden. Furthermore, while sector-level trends give us an indication of the challenges facing certain industries, performance also varies widely at a company level within each sector. Working capital is a measure of a company's liquidity, operational efficiency and its short-term financial health. Days inventory outstanding ratio simply speaks of the time, a business takes, to convert its inventory into sales. Inventory to Working Capital Explanation. Note that a low value of 1 or less of inventory to working capital … What is Days Inventory Outstanding (DIO)? Das Working Capital Management kann als Instrument bzw.